The Hindu Business Line : BankEx jumps 3.59% on improved sentiment

Mumbai, Nov. 2 On a roller coaster day, the BankEx index gained the most. The index was up 3.59 per cent or 389.84 points. It touched a high of 11331.45 during the day and at the time of market closing it stood at 11241.53.

The major gainers include SBI, HDFC Bank and ICICI Bank.

Improved confidence

As the 50 bps hike in CRR has already been expected by market men, it did not affect the sentiment towards banking sector.

“People seem to have digested the 50 bps hike in CRR by the RBI, as you can see the reduced uncertainty towards the banking sector now. Most banks are also reducing their interest rates, which will take care of the growth of this sector. Now, the overall confidence of investors has increased,” said a banking analyst with a broking firm.

Economists say that banking industry will reflect the growth of an economy.

“FIIs bet on India because of the growth of our economy, they also bet on the banking sector, as it is performing quiet well,” added an analyst.

Even though the interest rate has increased this hasn’t deteriorated the asset quality as much, as most banks have updated their technical platform said an analyst with Angel Broking.

SBI soars

SBI shares did exceedingly well today, going up a whopping 8.74 per cent to end the day at Rs 2,251 and it touched a high of Rs 2,278.

This was on reports that the Government would soon give an in-principle approval for a rights issue. It can sell as much as Rs 20,000 crore worth of shares through the rights issue.

HDFC Bank shares gained 4.97 per cent and Bank of Baroda 6.54 per cent and Kotak Mahindra Bank 0.91 per cent.

Of the 18 Bankex stocks, only Federal Bank and Karnataka Bank ended in negative.

More Stories on : Banking | Stocks | Stock Exchanges

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page